Perth,
For me, a web-based solution is the only way to go. I move around from computer to computer at home, work and play. Browser-based favorites and hot links don't meet all my needs for link list maintenance and portability.
You only get what you pay for, one way or the other, even if you maintain and host your own web page. Unless you use a free weblog service like Blogger and Blogspot. But, as you say, that can be unwieldy and difficult to organize because link lists is not specifically what the service is designed for.
A value-added service at $49.95 per year, that provides a structure for adding your own links to those maintained by the "editor" is
www.ceoexpress.com. This includes other features such as web-based email.
I know that a "fee for service" concept isn't the answer for everyone, but CEO Express is exactly what you are describing.
And you didn't specify FREE.